1 Apr 2016
Employment effects of innovation in developing countries: A summary
r4d Working Paper 2016/2 by Doris Oberdaberning
Is technological progress causing inequality and unemployment in developing countries? In this paper we survey the literature on the effects of innovation and technological change on employment, demand for skills, and wages. We revisit theoretical arguments of the effects of innovation on labor market outcomes such as employment, skill premia, and the life span of jobs, and summarize the findings of empirical studies. We pay special attention to the empirical literature for developing countries. We also visit some arguments concerning the role of policy in this context.